7 in 10 Indian Banks Run AI in Production; Security and Control, Not ROI, Is Now the Main Brake on Scale: Zeta Survey

7 in 10 Indian Banks Run AI in Production; Security and Control, Not ROI, Is Now the Main Brake on Scale: Zeta Survey

Survey of 40 CXOs across 18 leading banks and NBFCs finds AI live in bounded, reviewable use cases, with roughly three-quarters of technology and risk leaders naming security and data privacy as the leading barrier to going further.

Most banks direct less than 10% of new-project technology spend to AI, and four in ten digital leaders cannot yet point to a high-ROI use case, pointing to value that is real but not yet repeatable.

Zeta today announced the findings of its 2026 CXO survey on the state of AI in Indian banking, based on responses from 40 CXOs across 18 leading banks and NBFCs. AI is now in production at most institutions: 70% of CDO respondents place their banks at selective or scaled deployment, including 30% at scaled deployment. Adoption is strongest in bounded, reviewable areas such as customer service, fraud and risk analytics, document processing and software testing. Integration into end-to-end workflows and consequential decisions is at an earlier stage.

The survey points to a clear divide between piloting AI successfully and deploying it repeatably at scale. Banks have proven that AI works in production. What remains harder is reproducing that success across the institution without rebuilding data, integrations and controls for every new use case. The technology estate is more connected than ever, but the capabilities that make it usable by AI, from permissioned data and AI-operational infrastructure to engineering controls, governance and skills, are developing at different speeds.

Investment reflects this. Most institutions surveyed direct less than 10% of new-project technology spend to AI, including some with AI across multiple functions. The survey suggests this is not a lack of conviction: lack of ROI clarity is the lowest-rated barrier, and executive scepticism and employee resistance rank below skills and security. Banks are measured because control, not appetite, sets the pace.

Key findings from the survey

AI is creating meaningful operational impact, but it remains concentrated in structured workflows.

• - 88% of COO respondents identify retail lending as an area where AI is delivering meaningful impact.
• 75% cite customer service.
• 63% each cite CASA and back-office operations.

Banks are confident about data availability; making it usable for AI is the harder problem.

• 80% of CIOs and CTOs describe their data environment as mostly ready for AI at scale.
• 61% point to insufficient labelled or training data.
• 53% to privacy and consent.
• 46% to siloed data.
• 67% are using or piloting AI to enhance or enrich their data.

Technology assets are connected; making them operable by AI is the next step.

• Real-time data platforms and API-first architectures: 79% adoption.
• Core modernisation and cloud: 64%.
• Advanced analytics and MLOps: 43%.

AI has a foothold in software engineering; adoption thins as AI moves from producing to executing.

• 80% report using AI in testing and QA.
• 60% in code generation.
• 40% in code review.
• 30% each in specifications, documentation, deployment, CI/CD, and incident detection.

Banks are preparing to take AI into consequential decisions; governance is developing alongside.

• 60% of CROs identify AI-led credit-risk models, predictive early-warning systems and real-time fraud decisioning as top priorities.
• 60% say Responsible AI frameworks are under development.
• 20% describe model-risk management as very mature.

AI is changing work before it changes workforce size; internal capability-building is catching up.

• Half of operations leaders expect AI-led productivity gains to release capacity for redeployment.
• None expect workforce reductions above 20%.
• Banks are building AI skills faster through specialist hiring (3.33/5) and external partners (3.0/5) than internal development (1.0/5).

From selective production to repeatable scale

Taken together, the findings suggest Indian banking has moved past the challenge of taking AI from experiment to production. Production adoption is real but selective, concentrated where the problem is well understood, outcomes can be reviewed and existing controls contain the consequences of error.

The question now is whether banks can take what works in these settings and reproduce it across the institution without rebuilding the surrounding data, integrations, controls and engineering practices each time. The survey indicates that this depends on two shared foundations rather than more individual deployments: a core that AI can use, with banking meaning and permissions travelling with the data, and a control layer that establishes what AI may access, decide and execute and keeps a record of it.

“Indian banks have shown that AI creates value in production. The next challenge is making that success repeatable, and the survey is clear about what stands in the way: not conviction, but control,” said Sivaram Kowta, President, Zeta India.

About the Survey

Zeta's 2026 CXO survey on AI in Indian banking draws on responses from 40 CXOs across 18 leading banks and NBFCs, including CIOs, CTOs, CDOs, CROs and COOs. It examines AI adoption and the institutional capabilities required to scale it across data and infrastructure, operations and workflows, engineering and SDLC, governance and trust, and workforce and organisation.

About Zeta:

Zeta is a next-gen banking technology company. Its cloud-native and fully API-enabled platform supports card processing, issuing, lending, core banking, fraud management, loyalty programs, digital banking apps, and more. With over 1,700 employees globally, Zeta empowers financial institutions to innovate and rapidly launch compliant financial products. Globally, customers have issued over 25M cards using Zeta’s platform.

Media Contact:
Aafia Feroze | [9902491526](tel:9902491526) | aafiaf@zeta.tech

Elon Musk Launches X Money, Turning Social Media Into a Banking Platform

Elon Musk has officially launched X Money in the United States, embedding full-fledged banking features directly inside the X social media app. The service offers Premium and Premium+ subscribers deposit accounts, instant transfers, early paychecks, up to 6% APY interest, and a Visa-powered X Card.

X Money integrates deposit accounts, peer-to-peer transfers, a Visa debit card, and direct deposits directly within the app. Its rollout comes amid heightened scrutiny from lawmakers, who are raising concerns over consumer safeguards and the platform’s push into financial services.

Your money, on the world’s most powerful network

𝕏 Money is rolling out to U.S. Premium and Premium+ subscribers starting today pic.twitter.com/2c1UMkB4Kn

— X Money (@XMoney) July 27, 2026

Key Features of X Money

• Deposit Accounts: Held at Cross River Bank (FDIC-insured up to $250,000).
• High-Yield Interest: Up to 6% APY on deposits, higher than most U.S. savings accounts.
• Early Paychecks: Direct deposits available up to 2 days before payday.
• Instant Transfers: Free peer-to-peer payments between X users.
• X Card: Visa debit card offering 3% cashback, no foreign transaction fees, and Apple/Google Wallet support.
• ATM & Wires: Free ATM withdrawals, wire transfers, and even paper checks.
• Security: Passkey authentication, custom transaction limits, Visa fraud detection.

Comparison: X Money vs Competitors

Service	Interest/APY	Cashback	Unique Features
X Money	Up to 6%	3%	Early paychecks, integrated social media, FDIC insurance
Venmo	None	None	Peer-to-peer transfers only
Cash App	~2% (savings)	Limited	Bitcoin trading, stock investing
SoFi	~4.5%	2%	Loans, investing, broader financial ecosystem

Risks & Considerations

• Regulatory Oversight: U.S. lawmakers have questioned how X can sustain 6% yields, given Cross River Bank’s past FDIC enforcement actions.
• Limited Availability: Currently restricted to U.S. Premium/Premium+ subscribers; not yet available in India.
• Competitive Market: Faces strong rivals like PayPal’s Venmo, Zelle, and Cash App.
• Reliance on Cross River Bank: X is not a bank itself; deposits depend on partner institutions.

Global Context

• For users in India, X Money is not yet available. However, Musk’s ambition is to turn X into a WeChat-style “everything app,” suggesting eventual international expansion.
• If rolled out globally, it could compete with UPI-based platforms like PhonePe, Paytm, and Google Pay in India.

Axis Finance Unveils Drishti, Its In-House Digital Rules Engine to Transform Loan Decisioning With Speed and Intelligence

• Configurable digital platform to enhance speed, consistency and data-led decisioning across loan journeys
• Aims to improve turnaround times and strengthen risk oversight across retail and MSME lending

Axis Finance Limited (AFL), one of India’s fast-growing non-banking financial companies (NBFCs), today announced the launch of Axis Finance Drishti, its in-house Business Rules Engine (BRE). The platform is designed to bring greater speed, consistency and intelligence to credit decision-making. In its first phase, Drishti has been rolled out for Personal Loans, Business Loans, Loan Against Property and Disha Home Loans.

Developed as a configurable digital platform, Drishti enables automated and policy-driven credit assessments by combining underwriting workflows with data-led insights and statistical scorecards. The platform incorporates real-time decisioning, dynamic policy implementation and integration with multiple data sources including alternate data to support both straight-through processing (STP) and assisted credit journeys.

The initiative has been introduced in alignment with AFL’s core strategy, ‘Grow the Good’, to strengthen its digital lending & technical capabilities and enhance the overall borrowing experience for customers. It is expected to drive operational excellence by enabling faster, smarter and more scalable credit decisioning, improving efficiency while delivering a more seamless and frictionless loan journey.

With Drishti, AFL aims to bring greater standardization to credit evaluation, thereby enhancing consistency and governance in lending decisions. This marks a key step in Axis Finance’s ongoing focus on leveraging technology and analytics to simplify lending processes while reinforcing disciplined risk management and operational efficiency.

Commenting on the development, Sai Giridhar, MD & CEO, Axis Finance Limited, said, “At Axis Finance, our focus is on building a more agile and analytics enabled lending ecosystem. With the launch of Axis Finance Drishti, we are strengthening our ability to deliver faster, more consistent credit decisions by embedding intelligence, advance analytics and automated credit workflows into our core decisioning frameworks, while maintaining strong governance and risk discipline. As we scale, investments in such capabilities will be critical to enhancing customer experience, improving portfolio quality and supporting sustainable portfolio growth.”

Axis Finance continues to prioritise customer experience through ongoing investments in technology and process improvements. Over the past year, the Company has introduced initiatives such as ABC Scorecards to enhance objectivity in credit assessment and an AI-assisted quality monitoring framework for collection, reinforcing fair and transparent customer interactions. Together, these efforts reflect AFL’s focus on combining analytics, technology and governance to drive more efficient and customer-centric lending journeys.

About Axis Finance Limited

AFL was incorporated in India on 27th April 1995 and is a subsidiary of Axis Bank. It is a non-deposit accepting non-banking finance company (NBFC) regulated by the RBI.

AFL is a diversified, AAA rated NBFC serving Retail, MSME and Corporates with a clear focus on lending to India’s enterprise ecosystem. On the retail front, AFL offers a diversified suite of products including Loans Against Property, Personal Loans, Business Loans, Shakti M-LAP, Disha-HL, Home Loans, Kushal Loans and Vyapar Loans. In the MSME segment, the Company operates through its dedicated Retail Banking Group (RBG), Business Banking Group (BBG), and SME verticals. The corporate portfolio includes Collateralized Lending, Corporate Financing, and Real Estate Funding.

ServiceNow Invests $40m in Businessnext to Accelerate Autonomous Banking and AI-led Financial Services Across Asia Pacific

• The collaboration with ServiceNow further boosts India’s role in global AI technology for financial services

ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced an investment of USD 40 million in BUSINESSNEXT, an autonomous operating platform for banking and financial services.

The series C round, valuing BUSINESSNEXT at USD 700 million, will strengthen the company's efforts to drive autonomous operations and private AI solutions across banking and financial services.

BUSINESSNEXT’s customer relationship management (CRM) verticalized AI capabilities and digital lending platform for financial services combined with ServiceNow's commitment to delivering industry-specific AI solutions underscores the significant growth potential in working together to accelerate the autonomous banking across the Asia Pacific region.

“Autonomous banking is not a vision we are chasing — it is a category we have been building for years. Today, as AI has matured, this investment will further accelerate our efforts to deliver Private AI solutions, meeting the unique needs of banking and financial services, helping ensure the highest level of security while meeting all regulatory governance frameworks and sovereignty aspects” said, Nishant Singh, CEO, BUSINESSNEXT.

“India's financial services sector is at an inflection point — institutions are moving from digital experimentation to full-scale AI-led operations. ServiceNow's investment in BUSINESSNEXT is a direct bet on that transformation, bringing together deep banking intelligence and enterprise-grade AI orchestration to help Indian banks and insurers move faster, serve customers better, and operate with far greater efficiency." – Kulmeet Bawa - GVP & Managing Director, India & SAARC, ServiceNow

Front-to-Back Orchestration: BUSINESSNEXT and ServiceNow together will create a unified autonomous operating fabric for financial services enterprises., tapping into a market that is expected to grow to USD 3.59 Billion by 2035 with a CAGR of 20.28% according to the Market Research Future report.

BUSINESSNEXT manages customer-facing acquisition, engagement, and real-time customer signals, while ServiceNow's Financial Services Operations (FSO) platform orchestrates middle and back-office operations—including case management, complaints handling, and agentic AI workflows.

This combination along with ServiceNow’s AI Control Tower helps eliminate fragmentation and enables financial services organisations to deliver a seamless system of execution for creating future ready autonomous operations with regulatory sector guard rails at scale.

Commenting further on the announcement, Nishant added, “the collaboration with ServiceNow marks a turning point for the global banking industry — one that finally connects customer intelligence with enterprise execution in real time. Additionally, with deep banking intelligence and AI-led customer engagement capabilities, financial institutions can now operate with greater speed, intelligence, and coordination across all customer and operational touchpoints”.

Already powering 1 million+ users, 75,000+ branches, and over 1 billion end customers globally, BUSINESSNEXT brings over 15 years of deep banking intelligence — combining AI-led decisioning, customer context, and agent-driven execution — built specifically for financial institution. 

Notably, BUSINESSNEXT was positioned as a Leader in the Forrester Wave™: Customer Relationship Management Software for Financial Services, Q1 2025, achieving the top ranking globally for its platform offerings ahead of leading global vendors. Forrester highlighted BUSINESSNEXT's out-of-the-box BFSI workflows, ease of customization, and AI capabilities—including predictive, generative, and agentic AI—as standout differentiators.

From Call Centers to Chatbots: How AI Is Reshaping Indian Banks

Indian banks are increasingly deploying conversational AI to enhance customer service, with Bank of Baroda’s newly launched bob SAMVAD standing out as the first multilingual AI-powered platform enabling real-time communication in 22 Indian languages. This marks a major step toward inclusive, accessible, and efficient banking for customers across India.

Key Conversational AI Initiatives by Banks in India

Bank of Baroda – bob SAMVAD

• Launched March 2026. 
• AI-powered multilingual conversational platform
• Supports 22 Indian languages for real-time communication
• Eliminates language barriers between customers and branch staff
• Enhances in-branch customer interactions and accessibility

Private Banks (HDFC, ICICI, Axis)

• Widely use AI chatbots on mobile apps and websites. 
• Services include balance inquiries, fund transfers, loan applications
• Personalized product recommendations and fraud detection alerts. 
• Lead AI adoption due to larger asset size and stronger digital infrastructure

State Bank of India (SBI) – SIA Chatbot

SIA (SBI Intelligent Assistant) is an AI-powered conversational chatbot developed for the State Bank of India to handle customer queries 24/7. 

• AI-powered chatbot available on SBI’s website and mobile app
• Handles FAQs, product details, and transaction support
• Focus on scalability to serve millions of customers simultaneously

Kotak Mahindra Bank – Keya

• AI-based voicebot integrated into mobile banking
• Provides voice-driven banking services like fund transfers and account queries
• Designed for hands-free, conversational banking

Comparison Table: Conversational AI in Indian Banks

Bank	Platform/Service	Key Features	Languages Supported	Focus Area
Bank of Baroda	bob SAMVAD	Multilingual AI, real-time translation	22 Indian languages	In-branch customer service
SBI	SIA Chatbot	FAQ handling, product info, transactions	English, Hindi	Web & mobile queries
Kotak Mahindra	Keya Voicebot	Voice-driven banking	English, Hindi	Mobile app
HDFC/ICICI/Axis	AI Chatbots	Account services, fraud alerts, personalization	Primarily English, Hindi	Digital banking

Challenges & Risks

• Language accuracy: AI translation must handle dialects and regional variations
• Data privacy: Conversational AI involves sensitive financial data; robust encryption is essential
• Customer adoption: Older customers may prefer traditional banking methods
• Operational costs: Developing and maintaining AI platforms requires significant investment

Benefits of AI Chatbots for Banks in India

Operational Efficiency

• RBI Bulletin (2024): AI adoption driven by asset size and capital adequacy
• Chatbots streamline customer service and reduce manual workload
• Automates up to 70% of routine banking queries

Customer Experience

• Improves response times by up to 95%
• Multilingual support bridges linguistic divides (e.g., bob SAMVAD with 22 languages)
• 60% of Indian customers prefer WhatsApp-first support

Cost Reduction

• Reduces dependency on call centers and branch staff
• Scales customer support without proportional manpower increases
• HDFC’s EVA processes 5 million queries per month

Risk Management & Compliance

• Integrates with fraud detection systems
• Ensures compliance with RBI regulations
• Provides consistent, auditable customer interactions

Comparative Impact

Benefit Area	Impact for Banks	Example
Efficiency	Automates 70% of queries	HDFC EVA, ICICI iPal
Customer Experience	95% faster response times, multilingual support	Bank of Baroda bob SAMVAD
Cost Savings	Reduced call center load	SBI SIA, YONO Bot
Risk Management	Fraud detection integration	AI adoption across private banks

Challenges & Limitations

• Dialect accuracy: India’s linguistic diversity complicates chatbot translation
• Data privacy: Requires strong encryption and compliance with RBI norms
• Customer trust: Some users prefer human interaction for high-value transactions
• Investment costs: Smaller banks may struggle with AI deployment expenses

Conversational AI chatbots benefit Indian banks significantly by cutting costs, improving efficiency, and enhancing customer satisfaction. Private banks lead adoption, while Bank of Baroda’s bob SAMVAD sets a benchmark for inclusivity. Conversational AI is becoming a strategic necessity for competitiveness in India’s digital-first financial ecosystem.

Major Conversational AI Deployments in Indian Banking

Bank of Baroda – bob SAMVAD

• Launched March 2026
• First multilingual AI-powered platform in Indian banking
• Real-time two-way communication in 22 Indian languages
• AI-driven translation between customers and branch staff
• Enhances inclusivity and accessibility across India

State Bank of India (SBI)

• SIA (SBI Intelligent Assistant): Chatbot for FAQs, product details, and transactions
• YONO Chatbot: Integrated into SBI’s flagship app for account queries, transfers, and bill payments
• Scales to serve millions of customers simultaneously

HDFC Bank – EVA

• Developed with Senseforth AI
• Handles over 5 million queries per month
• Provides instant answers on products, services, and transactions
• Reduces call center load significantly

ICICI Bank – iPal

• AI chatbot on website and mobile banking
• Offers account balance checks, transaction history, loan queries
• Strong integration with ICICI’s digital ecosystem

Kotak Mahindra Bank – Keya

• Voicebot integrated into mobile banking
• Enables voice-driven transactions like fund transfers and account queries
• Focused on hands-free, conversational banking

Axis Bank – Axis AHA!

• AI chatbot on mobile app and website
• Provides personalized recommendations, account services, and transaction support
• Enhances digital engagement and cross-selling

Comparative Snapshot

Bank	Platform	Mode	Languages	Key Use Cases
Bank of Baroda	bob SAMVAD	Text + Voice	22 Indian languages	In-branch multilingual support
SBI	SIA, YONO Bot	Text	English, Hindi	FAQs, transactions, digital banking
HDFC Bank	EVA	Text	English, Hindi	High-volume query handling
ICICI Bank	iPal	Text	English, Hindi	Account services, loan queries
Kotak Mahindra	Keya	Voice	English, Hindi	Voice-driven mobile banking
Axis Bank	AHA!	Text	English, Hindi	Personalized digital engagement

Trends & Insights

• Multilingual AI: Bank of Baroda’s bob SAMVAD sets a benchmark
• Voice-driven banking: Kotak’s Keya shows shift to hands-free banking
• High-volume automation: HDFC’s EVA reduces reliance on human agents
• Cross-selling & personalization: Axis and ICICI leverage AI for recommendations
• Financial inclusion: Conversational AI helps reach rural and semi-urban customers

Challenges

• Dialect handling: India’s linguistic diversity complicates translation
• Data security: Compliance with RBI norms is essential
• Customer trust: Some prefer human interaction for high-value transactions
• Integration costs: Smaller banks may struggle with investment

Outlook

Conversational AI in Indian banking is moving beyond simple chatbots to multilingual, voice-enabled, and real-time platforms. With bob SAMVAD, India is setting a benchmark for inclusive banking, and other banks are expected to follow suit with similar innovations.

Bank of Baroda Launches bob SAMVAD: AI-Powered Multilingual Platform to Transform Branch Customer Experience

Bank of Baroda has unveiled bob SAMVAD, an industry-first AI-powered multilingual conversational platform designed to revolutionize customer interactions at its branches. The platform was formally launched in Mumbai by Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance.

bob SAMVAD aims to eliminate language barriers by enabling seamless, real-time communication between customers and branch staff in their preferred languages. Developed entirely in-house, the platform leverages advanced AI-driven speech and language technologies to support two-way conversations across 22 languages with contextual accuracy and natural fluency. Customers can input queries in their chosen language, which are instantly translated for staff, and vice versa, ensuring smooth service delivery. The system also offers both text and voice modes, making it fully accessible.

Congratulating the Bank, Shri Nagaraju commended the initiative as a benchmark for inclusive and accessible service delivery in the sector. “bob SAMVAD will promote more inclusive and accessible service delivery and help improve customer service at branches,” he said. He also lauded Bank of Baroda’s innovative use of technology to bridge linguistic divides in banking.

Dr. Debadatta Chand, Managing Director & CEO of Bank of Baroda, emphasized the customer-centric design of the platform: “With bob SAMVAD, Bank of Baroda is leveraging AI to make our branches more inclusive and customer-friendly by enabling seamless real-time conversations in local languages. This initiative reflects our commitment to operational excellence by combining technology with customer-centric design.”

In its first phase, bob SAMVAD will be rolled out across 250 branches in Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, and Maharashtra, followed by a phased expansion across the Bank’s nationwide network.

Alongside the launch, Shri Nagaraju also visited bob Forest, a 6,000 sq. ft. green oasis at the Bank’s BKC office in Mumbai. The initiative, part of the Bank’s broader ESG commitments, complements earlier sustainability projects such as bob Earth, Green Deposits, and Green Bonds. bob Forest promotes biodiversity and cleaner air, reinforcing the Bank’s dedication to environmental stewardship.

With bob SAMVAD and bob Forest, Bank of Baroda is setting new benchmarks in both technological innovation and sustainability, strengthening its position as a forward-looking institution committed to customer experience and responsible growth.

Jio Payments Bank Introduces UPI-based Cash Withdrawal Services

Jio Payments Bank Limited (JPBL), a wholly-owned subsidiary of Jio Financial Services Limited has introduced UPI-based cash withdrawal through its Business Correspondent (BC) touchpoints, marking an important step towards strengthening India’s digital payments ecosystem and advancing financial inclusion in the country.

The feature enables customers, particularly in rural and semi-urban areas, to conveniently withdraw cash by simply scanning a UPI QR code and authorizing the transaction through their UPI application, eliminating the need for debit cards or access to traditional ATM infrastructure.

By enabling cardless cash withdrawals at BC touchpoints, the initiative bridges the gap between digital payments and physical cash access, while providing first-time digital users with an assisted and secure way to experience UPI transactions.

Through this initiative, JPBL continues to leverage the digital payments infrastructure and its last-mile BC network to expand accessible banking services, strengthen UPI's reach among cash-dependent segments, and enhance financial inclusion across rural and semi-urban India.

About Jio Payments Bank Limited

Jio Payments Bank Limited (JPBL) is a next-generation, digital-first bank committed to revolutionizing banking in India. Granted approval by the Reserve Bank of India under the Banking Regulation Act, 1949, JPBL was incorporated in November 2016 to offer secure, simple, and inclusive banking solutions for every Indian. Its suite of offerings is designed to meet the diverse financial needs of individuals and businesses alike.

About Jio Financial Services Limited:

Jio Financial Services Limited (JFSL) is a Core Investment Company (CIC) registered with the Reserve Bank of India. As a new-age institution, JFSL operates a full-stack financial services ecosystem through customer-facing subsidiaries, including Jio Credit Limited, Jio Insurance Broking Limited, Jio Payment Solutions Limited, Jio Leasing Services Limited, Jio Finance Platform and Service Limited, and Jio Payments Bank Limited.

Through a 50:50 joint venture with BlackRock, JFSL offers asset management services in India through Jio BlackRock Asset Management Private Limited; and wealth management through Jio BlackRock Investment Advisers Private Limited. The JV with BlackRock also proposes to offer broking services through Jio BlackRock Broking Private Limited.

JFSL has entered into a 50:50 joint venture with the Allianz Group and has set up Allianz Jio Reinsurance Limited to offer reinsurance services in India. The two entities have also signed a non-binding agreement to explore opportunities in general and life insurance.

With a digital-first model, JFSL is committed to enhancing the financial well-being of Indian citizens by enabling them to borrow, transact, save, and invest seamlessly. Through the JioFinance app, customers can access a wide range of solutions including loans, savings accounts, investment products and solutions, UPI, bill payments, recharges, digital insurance, financial tracking and management tools, and more.

For more updates, please visit www.jfs.in

UST Strengthens Banking Tech Portfolio with Tailwind Acquisition

UST, a leading AI and technology transformation solutions company, has acquired Texas-based fintech company Tailwind Business Ventures, strengthening its position in a dynamic sector while also expanding its presence in South America. Tailwind was founded in 2003 as Integritas Solutions Group, with offices in Austin, TX, USA, and Rio de Janeiro, Brazil. In 2009, it had expanded operations to Sri Lanka, with a Portugal delivery center added in 2019. With over 220 employees globally, Tailwind boasts robust expertise in the banking and financial services domain that will bolster UST’s standing in this critical market.

As the digital banking solutions market continues to expand, demand for implementation and services is expected to grow. With this strategic acquisition, UST will be able to increase its share of digital banking solutions implementation and support services for banks and credit unions.

Tailwind currently provides a range of advanced technological services to numerous prominent financial institutions worldwide. Its core offerings include the implementation of AI-based digital banking solutions, the modernization of legacy systems, and the customization of products to meet specific client requirements. The company also delivers product and project management services, guiding clients through every stage of their technology journey to achieve best-in-class outcomes.

"I am excited to welcome the Tailwind team to UST. Tailwind's core banking expertise, combined with UST's strengths in modernization, AI, and enterprise transformation, gives us the scale and depth to solve banks’ toughest challenges. Together, we bring hyper-personalization, integrated systems architecture, and security by design that not only improves customer journeys but also rebuilds trust and confidence across the banking ecosystem. We are now better positioned to drive end-to-end banking transformation in emerging and high-growth markets—LATAM, APAC, and Africa—where mid-market and large regional banks are looking for partners who truly understand their needs. At the same time, we are deepening our presence in North America with a complete, modern platform and services story that helps banks compete and innovate faster,” said Manu Gopinath, President, UST.

“Acquisition of Tailwind marks a strategically significant investment for UST as we strengthen our banking and financial services platforms and solutions. Tailwind’s deep expertise in core banking, delivered through advanced digital banking solutions, enables financial institutions to provide exceptional customer experiences. Tailwind’s partnerships with leading providers such as Temenos and Q2 further enhance the value we deliver to our clients. We are delighted to welcome Tailwind’s talented team to UST and look forward to driving accelerated growth together,” said Vijay Padmanabhan, Chief Financial Officer, UST.

“Becoming part of UST is an exciting next chapter for the Tailwind team. Together, we can scale our Software as a Relationship (SAARTM) approach across the world while staying deeply focused on long-term client partnerships. Our shared values and cultural alignment make this a natural fit, and we’re energized by the opportunities ahead. We feel confident that, together, we will build - and launch - a new global software development standard,” said Paulo Vieira, Co-founder, Tailwind.

UST and Tailwind did not disclose the investment value.

Axis Bank Launches Safety Centre on Mobile App to Fight Digital Frauds

Axis Bank, one of the largest private sector banks in India, announced the launch of its new ‘Safety Centre’ on the Axis mobile banking app ‘open’. This security hub empowers customers with real-time, customer-controlled security features to safeguard their accounts against unauthorized or suspicious activities, without the need to call customer care or visit a branch.

The Safety Centre offers granular control over key digital banking functions, enabling customers to tailor security settings based on their usage and comfort. Key features include:

• SMS Shield: An industry-first feature, it verifies the authenticity of SMS messages by checking the Sender ID against Axis Bank’s official IDs.
• Turn off Internet Banking: Disable Internet Banking access completely if not required. 
• Stop Funds Transfer: Instantly restrict all fund transfer capabilities across Mobile Banking and Internet Banking with a single toggle. 
• Prevents Online Shopping using Net Banking: This feature also blocks transactions initiated through third-party apps (e.g. e-commerce platforms) that use Net Banking as a payment mode. 
• Stop UPI Payments: Restrict UPI transactions via the Axis Mobile Apps
• Prevent Addition of New Payees: Ensure funds can only be transferred to existing beneficiaries.
• Set Limits for Fund Transfers & UPI: Define per-transaction limits for fund transfers and UPI payments; higher-value transactions will require an additional authentication.

The Safety Centre delivers instant activation of security settings, ensuring changes take effect immediately without any waiting time. It provides complete control to users, enabling them to proactively secure their accounts without external assistance. By offering selective blocking and real-time controls, the feature significantly reduces the risk of digital frauds. Additionally, it enhances operational efficiency by minimizing dependency on branches or call centres, allowing faster resolution and a seamless banking experience.

Speaking on the launch, Sameer Shetty, Group Executive - Digital Business, Transformation & Strategic Programs, Axis Bank, said, “Axis Bank has always prioritized customer safety as the cornerstone of its digital-first approach. The Safety Centre represents a decisive step in tackling the surge in digital frauds by giving customers real-time control over their banking security. We are continuously strengthening our safeguards through layered protection and advanced authentication features such as SMS Shield and In-App Mobile OTP, which ensure uninterrupted access while reducing dependency on external networks. These innovations combine robust security with a seamless experience, making digital banking intuitive and reliable. By embedding future-ready capabilities, we aim to deliver a secure ecosystem that evolves with the changing threat landscape and customer expectations.”

This launch builds on Axis Bank’s Safe Banking initiative, which includes industry-first innovations such as ‘Lock FD’, preventing premature closure of fixed deposits via digital channels, and ‘In-App Mobile OTP’, generating time-based OTPs within the app to reduce SMS OTP-related frauds.

As digital banking adoption accelerates, Axis Bank continues to lead the space with customer-centric innovations, ensuring secure, flexible, and future-ready banking experiences.

To know more, click here.

Karnataka Bank Modernizes Digital Infrastructure with IBM Cloud Pak, Cuts Costs by 30%

Karnataka Bank Limited (KBL), one of India’s leading 'A' Class Scheduled Commercial Banks, collaborated with IBM to modernize its digital banking infrastructure using IBM Cloud Pak for Integration on Red Hat OpenShift. Implemented by IBM ecosystem partner, Fyrii, along with IBM Customer Success Team, the transformation enabled Karnataka Bank to establish a secure, scalable, and agile Application Programming Interface (API) platform while reducing total cost of ownership and reinforcing its digital foundation.

Through this collaborative innovation, Karnataka Bank developed a modern, secure, and scalable API platform that reinforces the bank’s digital infrastructure while reducing operational costs. This platform enables quicker rollout of services such as digital payments, loan processing, and third-party integrations, while maintaining secure connections with multiple systems both internally and externally.

This marks a major milestone in our digital journey, said Venkat Krishnan, Chief Information Officer, Karnataka Bank Limited. With IBM Cloud Pak for Integration on Red Hat OpenShift, we now have an agile and secure platform that allows us to scale operations across India, simplify system management, and reduce costs—all while improving the overall customer experience. 

The upgraded API infrastructure strengthens security while boosting scalability by 50% and cutting operational costs by 30%. These gains come from migrating to an optimized container‑based platform purpose‑built for efficient microservices. The framework enables the bank to implement digital gateways to manage all API traffic. It also allows external partners to access the bank’s AI foundation models as APIs via AI Gateway. This facilitates seamless communication between internal, external and cloud systems while ensuring smooth integration with UIDAI, CERSAI, GST, Reg-Tech and CBDT services. The streamlined implementation process supports rapid adaptation to evolving market conditions and regulatory requirements.

Today’s banking sector is more complex than ever, comprising many systems and data sources in constant use. To stay ahead, banks require intelligent automation that not only streamlines operations but also anticipates issues before they arise. Karnataka Bank’s modernization showcases how intelligent automation and integrated systems can reduce complexity, boost efficiency and accelerate the delivery of secure, reliable digital services at scale, said Viswanath Ramaswamy, Vice President, Technology, IBM India & South Asia.

The implementation was led by Fyrii, with IBM’s Expert Labs supporting the critical phases of the rollout. The project is a key pillar of Karnataka Bank’s broader digital transformation strategy, Startup@100, which emphasizes agility and innovation as the bank celebrates 100 years of service.

Commenting on the collaboration Padma Subramanian, Co-founder and CEO, Fyrii said, “As IBM’s implementation partner, we at Fyrii are proud to support Karnataka Bank’s modernization journey by leveraging our Unified Fintech Platform alongside IBM Cloud Pak for Integration. This collaboration with IBM and Karnataka Bank demonstrates how we at Fyrii use our platform to accelerate digital transformation with greater agility and secure API enablement, helping form a foundation for the bank to innovate and serve customers seamlessly.”

About Karnataka Bank Limited

Established in 1924 and headquartered in Mangaluru, Karnataka Bank Limited is a premier private sector bank in India. As of 2025, the bank operates a network of 957 branches, 1,188 ATMs and cash recyclers, and 588 e-lobbies/mini e-lobbies across 22 states and 2 union territories, serving over 11 million customers nationwide.

Karnataka Bank offers a comprehensive suite of digital banking solutions, including KBL Mobile Plus, KBL mPassbook, BHIM KBL UPI App, KBL POS Manager, and KBL MoneyClick Internet Banking. In its centenary year, the bank continues to embrace technology-led innovation through its 'Startup@100' vision, aiming to enhance customer experiences and drive financial inclusion across the country.

About IBM

IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs, and gain a competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit www.ibm.com for more information.

Bank of India Announces 4 Major Launches, Strengthening Its Innovation Edge

Bank of India, one of India’s leading public sector banks reinforced its commitment to digital innovation and customer-centric solutions with the launch of four breakthrough products and initiatives aimed at enhancing security, convenience, and inclusivity in banking. The launches were unveiled during the Global Fintech Fest (GFF) 2025, where the Bank made a strong impression with its engaging and interactive booth.

The Bank’s booth was inaugurated by Dr. Arjun Deore, IFS, Regional Passport Officer & Head, MEA Branch, Mumbai, in the presence of Shri Rajneesh Karnatak, MD & CEO, and senior leadership of the Bank. Dr. Deore commended the Bank’s leadership in driving digital innovation and introducing cutting-edge solutions relevant to today’s evolving financial landscape.

Among the key launches was a Proof-of-Concept (PoC) solution designed to prevent fraudsters from registering on mobile banking applications through social engineering or fraudulent calls. The PoC was inaugurated by Shri Atul Kumar Goel, CE, IBA, who described the initiative as a potential game changer for the banking sector, addressing one of its most critical cybersecurity challenges.

The Bank also introduced NPCI’s biometric-based UPI transactions for small-value payments via mobile phones. This solution simplifies the user journey by mitigating UPI PIN fatigue and reducing transaction time by up to 20%, thereby improving the overall payment experience.

Further, the Bank unveiled two new premium credit card offerings in partnership with RuPay—

• Celestia, a premium credit card designed for high-value customers, offering benefits worth up to ₹1.5 lakh.
• Lakshmi Credit Card, a special card curated exclusively for women customers, offering a differentiated and empowering experience.

In line with its focus on financial inclusion, Bank of India also signed an MoU with PayNearby Technologies to avail business correspondent services under the Digital Naari Initiative. The MoU was exchanged in the presence of Shri Atul Kumar Goel, Shri Rajneesh Karnatak, Shri Subrat Kumar, Shri Rajeev Mishra, Shri Ashok Pathak, and Mr. Anand Bajaj. This partnership aims to empower hardworking women across rural and urban India, supporting the Government of India’s vision of inclusive and accessible banking.

NUCFDC–CSC Alliance to Launch Phased Digital Infrastructure for Urban Cooperative Banks

The National Urban Cooperative Finance and Development Corporation Ltd (NUCFDC), the Umbrella Organisation for India’s Urban Cooperative Banks (UCBs), has signed a Memorandum of Understanding with CSC e-Governance Services India Ltd. (CSC SPV) to fast-track the sector’s digital transformation.

The partnership aims to equip UCBs with secure and compliant digital infrastructure. The rollout will be undertaken in phases, beginning with Aadhaar-based eKYC, eSign, digital signature certificates, DigiLocker integration, e-stamp services, cloud hosting, data centre management, and cybersecurity solutions. Subsequent phases will introduce internet and mobile banking, kiosk-based services, and digital communication platforms.

NUCFDC will facilitate adoption across its member UCBs, while CSC SPV will provide platforms, APIs, and operational support. A joint governance team will oversee implementation and capacity building. The agreement also covers training, compliance support, grievance redressal, and data protection measures, with an emphasis on aligning with applicable regulatory norms to strengthen institutional processes within the UCBs.

The MoU was formally signed in Mumbai in the presence of Shri Prabhat Chaturvedi, CEO, NUCFDC, and Shri Bhagwan Patil, Group President, CSC SPV.

Commenting on the partnership, Shri Prabhat Chaturvedi, CEO, NUCFDC, said, “The Urban Cooperative Banking sector needs to leapfrog into the digital era along with its legacy grassroots character. This partnership equips UCBs with future-ready digital infrastructure, enabling them to serve millions with greater efficiency, transparency, and compliance. At a time when financial inclusion and trust are central to sectoral growth, this collaboration places UCBs firmly on the path of modernisation and resilience.”

Shri Bhagwan Patil, Group President, CSC SPV, said, “CSC SPV’s digital backbone, coupled with NUCFDC’s institutional mandate, creates a powerful Technology platform for transformation of Urban Cooperative Banks (UCBs). Together, we will deliver scalable solutions that strengthen the Cooperative Bank sector and also ensure last-mile citizens experience banking services with the same convenience. This is about reimagining urban cooperative banking for a digital India.”

About The National Urban Cooperative Finance and Development Corporation (NUCFDC)

The National Urban Cooperative Finance and Development Corporation Ltd. (NUCFDC) serves as the umbrella organization for India’s Urban Cooperative Banking (UCB) sector. Constituted with the support of the Ministry of Cooperation and in consultation with the Reserve Bank of India, NUCFDC has been mandated to explore avenues for capital mobilisation and enhance the professionalisation of the sector. It also aims to strengthen public confidence in UCBs by fostering a unified, resilient, and transparent banking framework.

About The CSC e-Governance Services India Ltd. (CSC SPV)

CSC SPV is a Special Purpose Vehicle incorporated as a Company under Companies Act to implement CSC Scheme and monitor Common Service Centers (CSC) incorporated under CSC Scheme and enables a range of services to be delivered through CSCs like Government to Citizen (G2C), Business to Customers (B2C), Business to Business (B2B). Education, Skills and other services to rural citizens. Also, it provides services for e-sign, e-KYC, Digilocker, Data Centre and other services.

HSBC’s Quantum Breakthrough Could Reshape Wall Street

In a landmark moment for financial technology, HSBC has unveiled results from a quantum computing trial that could redefine how Wall Street approaches bond trading. The bank’s experiment, conducted in partnership with IBM, demonstrated a 34% improvement in predicting bond trade execution—an edge that could translate into billions in competitive advantage.

Quantum Meets Wall Street

Using IBM’s Heron quantum processor, HSBC ran simulations on anonymized, production-scale European corporate bond data. Unlike previous quantum trials that relied on synthetic datasets or theoretical models, HSBC’s test was grounded in real-world trading conditions. The result: quantum algorithms outperformed classical methods in forecasting whether a bond would trade at its quoted price.

This is our Sputnik moment, said Philip Intallura, HSBC’s global head of quantum technologies. It’s the first time quantum computing has shown tangible value in live financial markets.

Why It Matters

Bond trading, especially in less liquid markets, hinges on predicting execution probability. A 34% boost in accuracy means traders can quote more confidently, manage risk better, and potentially unlock new revenue streams. For Wall Street firms competing on milliseconds and margins, quantum’s predictive power could be transformative.

The Quantum Arms Race

HSBC’s breakthrough adds fuel to a growing quantum race among global banks. JPMorgan Chase, Goldman Sachs, and Citigroup have all invested in quantum research, but HSBC’s use of real trading data sets a new benchmark. The trial also signals a shift from theoretical promise to practical deployment.

According to McKinsey, quantum computing could generate $72 billion in annual revenue by 2035, up from $4 billion last year. Financial services are expected to be among the earliest beneficiaries, especially in areas like portfolio optimization, risk modeling, and fraud detection.

What’s Next

While quantum computers remain in their infancy, HSBC’s trial proves that even today’s noisy intermediate-scale quantum (NISQ) devices can deliver meaningful results. As hardware improves and algorithms mature, quantum could become a core pillar of financial infrastructure.

For now, HSBC’s experiment is a wake-up call: the quantum future isn’t decades away—it’s already reshaping the foundations of Wall Street.

Banking Infrastructure Platform TransBnk Raises $25 Mn in Series B Led By Bessemer Venture Partners

Banking infrastructure platform TransBnk today announced its $25 million Series B Fundraise led by Bessemer Venture Partners with participation from Arkam Ventures and Fundamentum Partnership, with participation from existing investors 8i Ventures, Accion Venture Labs, GMO Venture Partners. The funds will primarily be used for geographical expansion and bolstering tech & Product talent.

Founded in 2022 by Vaibhav Tambe, Lavin Kotian, Pulak Jain and Sachin Gupta, TransBnk is building a common operating system for fintechs and other institutions to access the banking ecosystem. Their ‘single-window’ offering allows clients to leverage API infrastructure from various banks for seamless onboarding, transactions and reconciliations.

Over the past decade, there has been much tech-first innovation on the retail banking side that has made consumer journeys nimble and seamless. Corporate & business banking, however, has long lagged behind the innovation seen in retail banking. There is a gaping void in how corporations and lenders manage their digital banking operations, especially when it comes to navigating a fragmented ecosystem of accounts, interfaces, and manual processes. While retail users enjoy seamless, mobile-first banking journeys, corporate customers often rely on spreadsheets, RM calls, and multiple portals just to get basic tasks done. This is the gap which TransBnk aims to plug, by embedding itself directly into the core infrastructure of banks, enabling companies to view, transact, and reconcile across their multiple banking relationships in one unified, programmable interface.

TransBnk aims to capitalise on a larger industry trend - banks are moving away from monolithic, capex-heavy software stacks. Legacy providers are costly and can take years to implement, often delivering clunky and fragmented solutions. TransBnk offers an opex-led, modular alternative, starting with payment and lending rails, and potentially evolving into a full customer engagement layer or even a next-gen core for corporate banking. TransBnk therefore delivers modern infrastructure that is highly technical and complex, while demonstrating strong capital efficiency and profitability at this early stage, aiming to be the backbone of India’s corporate banking future. This allows banks to also upgrade their tech-stack to remain relevant and competitive.

TransBnk’s unique value proposition has translated into robust business metrics. They have grown from seed to double digit million in annual dollar revenue in less than 24 months. They have also integrated with 40+ banks, which include leading private and public sector players, MNC Banks as well as Small Finance Banks. They have more than 220 clients accessing nearly 1500 APIs on a monthly basis.

What sets the founding team apart is their deep experience in the field of corporate banking as well as transaction banking - a niche, specialized, and highly relationship-driven space, and the founders bring over 7 decades of collective experience in this domain.

Vishal Gupta, Partner, Bessemer Venture Partners said “We are excited to partner with the Transbnk team. Their deep industry expertise makes them best placed to disrupt corporate banking and transaction banking in India, making it more seamless and reducing fragmentation. Corporate banking has lagged behind their retail counterparts, where over the past 10 years innovation in this space has allowed users to enjoy frictionless, mobile-first banking journeys. We are confident that Transbnk will bring the same transformative spirit and user delight to the corporate and transaction banking ecosystem”

Vikram Chachra of 8i ventures said “We’re thrilled to welcome Bessemer, Fundamentum, and Arkam to the TransBnk family. When we led the seed round, we believed TransBnk could become the new foundational layer for corporate banking in India. Just two years later, it has emerged as India’s fastest-growing fintech infrastructure platform, putting banks back at the centre of the fintech landscape and enabling them to serve a new generation of digital-first businesses.”

Vaibhav Tambe, CEO and co-founder, TransBnk commented that “Series B is a massive growth catalyst—fueling our roadmap to scale, innovate, and set new benchmarks in global transaction banking. Our proprietary tech Infra is already powering leading NBFCs, Fintech players, Banks, Corporates and we are now expanding this across BFSI, Mid-Corporate & SMEs. TransBnk is strategically placed to expand beyond India, with encouraging traction in SEA and Middle East markets, while at the same time focused on consolidating our strength in the domestic market as an emerging leader in banking infrastructure.”

HCLTech and Thought Machine Forge Global Alliance to Accelerate AI-Powered Banking Transformation

HCLTech, a leading global technology company, today announced a global partnership with Thought Machine, a pioneer in cloud native banking technology, to accelerate the modernization of banks worldwide. The partnership aims to enable banks to rapidly transition from legacy systems and frameworks to intelligent, autonomous financial institutions powered by AI and cloud technologies.

Thought Machine’s Vault platform — next-generation core banking and payments technology — will be at the core of this transformation. By replacing outdated infrastructure with Vault’s cloud native architecture, banks can automate key operations, enhance efficiency and deliver personalized customer experiences. HCLTech will bring its deep expertise in banking technology, regulatory compliance and complex integrations to support rapid innovation and faster product launches.

As part of the partnership, HCLTech will offer full-stack transformation services through Vault-certified delivery teams, global fintech Centers of Excellence (CoEs) and a robust DevSecOps foundation. The company will also establish a dedicated global CoE for Vault Core and Vault Payments, focused on delivering modular, real-time and scalable solutions for the financial services sector. The joint offering will enable banks, whether established institutions or new challengers, to build agile, resilient and future-ready ecosystems rooted in AI-led strategies.

“Our global partnership with HCLTech marks a significant step in helping banks break free from legacy constraints and adopt truly digital-first models,” said Randy McFarlane, Global Head of Partnerships at Thought Machine. “Together, we will deliver intelligent, self-optimizing systems that evolve with customer needs.”

“This collaboration reflects our vision to lead the future of autonomous banking through cloud, data and AI,” said Sudip Lahiri, Executive Vice President and Head—Europe and UKI, Financial Services, HCLTech. “By joining forces with Thought Machine, we will help banks unlock exponential value, reduce operational friction and accelerate time to market.”

About Thought Machine

Thought Machine has developed the foundations of modern banking with its cloud-native core banking and payments technology. Its cloud-native core banking platform, Vault Core, is trusted by leading banks and financial institutions worldwide, including Intesa Sanpaolo, ING Bank Śląski, Lloyds Banking Group, Standard Chartered, SEB, Lunar, Atom bank, Curve, and more.

Vault Payments is a cloud-native payments processing platform – comprising a Universal Payment Engine to support all card and account-to-account payment types.

Vault Core and Vault Payments have been written from scratch as an entirely cloud-native system, giving banks full control to build any product required to flourish in a rapidly changing world.

Thought Machine is a global team spread across offices in London, New York, Singapore, and Sydney and has raised more than $500m in funding.

For more information, visit thoughtmachine.net

Global Banks Invest $100 Bn in Blockchain & Digital Asset Infrastructure Since 2020

A joint study by Ripple, CB Insights, and the UK Centre for Blockchain Technologies titled Banking on Digital Assets reveals:

• Over $100 billion invested by traditional banks in blockchain infrastructure (2020–2024).
• 345 blockchain deals, including 33 mega-rounds over $100 million.
• Top investors: Citigroup, Goldman Sachs (18 deals each), JPMorgan Chase, Mitsubishi UFJ (15 deals each), SBI Group.

What Are Banks Investing In?

Focus Area	Details
Payment Infrastructure	Largest share of investments; modernizing cross-border payments
Digital Asset Custody	65% of banks exploring custody services
Tokenization of Real-World Assets	Stablecoins and tokenized bonds are top priorities
Settlement & Issuance Rails	25% of deals focused on blockchain-based settlement systems

• Examples: HSBC’s tokenized gold platform, Goldman Sachs’ GS DAP, SBI’s quantum-resistant currency.

Strategic Shift & Global Momentum

• 90% of finance leaders expect blockchain to have a “significant or massive” impact by 2028.
• Banks are pivoting from speculation to infrastructure to modernize legacy systems.
• Emerging markets like India, UAE, and Singapore are driving adoption.

What’s Next?

• Two-thirds of banks plan to launch digital asset initiatives within 3 years.
• Upcoming focus areas:
  • Tokenized bonds
  • CBDC settlement layers
  • Private stablecoin networks

Axis Bank and JPMorgan Partner to Enhance Blockchain-based Payments

JPMorgan and Axis Bank have partnered to enhance blockchain-based payments, introducing 24/7 programmable USD clearing for commercial clients. This collaboration  aims to streamline cross-border transactions, offering real-time payment execution and improved liquidity management.

A 24/7 programmable USD clearing is a blockchain-based payment system that allows businesses to settle USD transactions in real time, anytime, without being restricted by traditional banking hours. This system is powered by Kinexys, JPMorgan's blockchain platform, and has been adopted by Axis Bank, making it the first Indian bank to offer this capability.

Traditional payments often involve multiple intermediaries, leading to delays. Blockchain enables real-time settlements, significantly reducing processing times from days to minutes.

The Axis–JPMorgan partnership leverages Kinexys, JPMorgan's blockchain platform, to streamline cross-border transactions, offering real-time payment execution and improved liquidity management. Axis Bank is the first Indian bank to adopt this infrastructure, operating out of GIFT City, India's international financial hub.

The Kinexys platform has already processed over $1.5 trillion in transaction volume, with a daily average exceeding $2 billion, reflecting a 10x year-over-year growth in payment transactions.

This move aligns with India's broader push for financial innovation, integrating blockchain into mainstream banking. This could be a game-changer for businesses seeking faster, more transparent payments.

To recall, in early of last month Axis Bank become the first Indian bank to execute an aircraft financing transaction through its International Banking Unit (IBU) at GIFT City IFSC. The landmark deal was completed for AI Fleet Services Ltd (AIFS), the leasing arm and wholly owned subsidiary of Air India (a Tata Group Company).

In January 2022, Axis Bank executed India’s first domestic trade transaction on the Secured Logistics Document Exchange (SLDE), a Government of India-backed blockchain platform. This initiative enhances transparency, speed, and auditability in trade finance.

Notably, Axis Bank is part of a 15-bank consortium exploring blockchain solutions for trade finance, aiming to reduce fraud and improve transaction efficiency.

NPST and Hyperface Partner to Enable Instant Credit Access via UPI for Banks

Partnership Set to Democratize Digital Credit Access for 400+ Million UPI Users

NPST, a leading provider of banking and payment solutions in India, and Hyperface, Asia’s first Credit Cards as a Service (CCaaS) platform, have announced a strategic partnership to enable banks and credit issuers to offer embedded credit solutions through UPI, marking a significant milestone in India's digital financial ecosystem and expanding instant credit access for millions of users.

With India's growing middle class and increasing discretionary spending, affordable access to credit remains a challenge due to low credit card penetration — just 100 million cards compared to over 400 million UPI users. The NPST-Hyperface alliance bridges this gap, delivering a seamless, digital-first credit experience that enhances purchasing power, fuels consumer spending, and drives financial inclusion at scale.

Banks and credit issuers can leverage their vast infrastructure and rich customer data to offer tailored UPI-based credit products. Eligible consumers will gain access to pre-approved credit lines at the point of sale, empowering them to make purchases and split payments into flexible instalments. Merchants stand to benefit from higher conversion rates, larger basket sizes, and stronger customer loyalty.

Through this partnership, NPST will integrate its UPI switch technology with Hyperface’s advanced Embedding Banking Platform. Hyperface's Credit Management Engine, built on a sophisticated technology stack, is a completely modular, flexible, and comprehensive solution; it enables banks not only to build, iterate and deploy Credit Line on UPI-ready products rapidly but also re-calibrate in real-time to drive scalability. The combined solution equips banks with digital-first credit solutions with full-spectrum lifecycle support — including customer risk assessment, real-time business insights, and built-in compliance tools — enabling innovative and sustainable credit offerings through UPI.

Commenting on the partnership, Deepak Chand Thakur, Co-Founder and CEO, NPST, stated; “We are proud to partner with Hyperface to democratize access to credit through UPI. As consumer expectations evolve, this collaboration positions banks to meet those needs with agility — driving customer satisfaction, boosting transaction volumes, and creating new revenue streams through interchange fees. Together, we’re not just transforming credit; we’re shaping the future of embedded finance in India.”

"The rapidly evolving UPI ecosystem demands both technological sophistication and extraordinary agility — qualities that legacy systems simply cannot deliver”, said Ramanathan RV, Co-Founder and CEO, Hyperface. “As new use cases emerge and requirements rapidly evolve, we recognized the need to partner with a modern, tech-forward player who could match our pace of innovation. Hyperface's advanced Credit Management Platform, combined with NPST's proven expertise in UPI technology, creates a powerful synergy that will enable banks to build, rapidly deploy and scale innovative credit solutions for tailored customer segments. This partnership exemplifies how new-age companies can collaborate to solve complex financial challenges at the speed the market demands."

About NPST

Incorporated in 2013, NPST is a leading fintech firm in India, part of the Make in India initiative and listed on the NSE Small and Medium Exchange. We specialize in UPI payments and digital banking and operate as both a Technology Service Provider (TSP) and a Payment Platform as a Service Provider (PaaS). Our solutions include online and offline transaction processing, banking super apps, fraud prevention, dispute management, and RegTech.

NPST’s mission is to deliver financial technology solutions across the financial value chain — serving banks, fintech’s, and other industry players — and to drive the growth of the digital payments ecosystem. NPST supports 100+ customers, and processes 50+ million transactions daily, advancing businesses, individuals, communities, and economies through its innovative solutions. For details, please visit https://www.npstx.com/.

About Hyperface

Hyperface is the Definitive Credit Cards Innovation Platform that is revolutionizing the way banks, brands, and fintechs approach credit card and credit line solutions. As Asia’s first Credit Cards as a Service (CaaS) platform, Hyperface provides businesses with the technology to launch, manage and scale their own credit card and credit line programs. From program design and development to risk management and compliance, Hyperface empowers banks and co-brands to deliver exceptional, digital-first experiences that resonate with modern consumers.

For details, please visit https://www.hyperface.co/.

Accenture Acquires Digital Twin Platform Developed by Singapore-based Percipient

Accenture has acquired a digital twin technology platform from Percipient, a Singapore-based fintech company.

The platform acts as a virtual duplicate of banks' legacy and modern systems, integrating and unifying data into a single real-time hub.

Percipient’s platform serves as a digital twin—or virtual duplicate—of banks’ legacy and modern systems, integrating and unifying the data from each one into a single-real time hub. This can reduce the challenges that many banks face around core modernizations by simplifying the application of data and enabling faster development of new products and services, all without overhauling existing systems or disrupting operations.

This technology helps financial services clients in the Asia Pacific region accelerate the reinvention of their core systems, fostering innovation and driving growth.

The acquisition complements Accenture's existing banking modernization capabilities, enabling banks to move away from legacy systems and adopt cloud and AI-led services.

Banks transitioning to a modern, cloud-enabled digital core could see up to a 60% increase in revenue growth rates and a 40% rise in profits, according to Accenture's research.

Navin Suri, the founder and CEO of Percipient, along with the company’s core technology leadership team, will join Accenture.

Masashi Nakano, Accenture’s Financial Services lead for Asia Pacific, emphasized the urgent need for transformation in banks' core systems, which are often decades old and costly to maintain.

Navin Suri highlighted the shared vision to reinvent digital transformation at financial institutions, enabling banks to seamlessly transform their legacy systems with greater agility and speed.

This acquisition is expected to significantly enhance Accenture's capabilities in helping banks modernize their core systems and unlock new opportunities for growth.

Tech Mahindra and BankTech Co. Partner for AI-powered Anti-Money Laundering Solution

Tech Mahindra has announced a strategic partnership with Discai, a BankTech company and subsidiary of the KBC Group, to deliver an AI-powered Anti-Money Laundering (AML) solution. This solution is designed to enhance transaction monitoring and ensure regulatory compliance for financial institutions.

The partnership combines Tech Mahindra's extensive IT integration experience with Discai's advanced AI and rule-based AML technology. The solution focuses on AI-driven and rule-based transaction monitoring, helping financial institutions effectively prevent and detect financial crime while adhering to regulatory standards.

This collaboration aims to provide a comprehensive, efficient, and secure AML solution that integrates seamlessly with existing systems.

AI helps financial institutions enhance their AML efforts, ensuring better compliance with regulations and reducing the risk of financial crime.

Tech Mahindra and Discai will provide customers with a comprehensive solution addressing the need for efficient and effective financial crime prevention. The modular solution will combine AI-driven technology with a robust rule-based engine, ensuring full compliance with regulatory standards while integrating seamlessly with existing systems. Additionally, Tech Mahindra will enhance the operational efficiency of financial institutions by reducing the risks associated with complex IT integrations.

Harshul Asnani, President and Head - Europe Business, Tech Mahindra, said, “As the financial industry continues to navigate complex regulatory environments and sophisticated security challenges, offering them a strategic advantage is critical to strengthening their compliance capabilities. In response, Tech Mahindra has partnered with Discai to revolutionize anti-money laundering processes, offering customers unparalleled efficiency and security to help them Scale at Speed™.”

Fabrice Deprez, CEO, Discai, said, “We are excited to partner with Tech Mahindra to extend our advanced AML solutions to a broader market. Powered by the expertise of KBC Bank Group, our AI-driven and rule-based technology, combined with Tech Mahindra’s proven IT integration skills, ensures that financial institutions can effectively combat financial crime while fully adhering to stringent regulatory requirements.”

Discai is a subsidiary of the KBC Group, specializing in innovative AI solutions for the financial sector. Their primary focus is on developing AI-driven tools to combat financial crime, such as their Anti-Money Laundering (AML) solution.

Discai leverages KBC's extensive expertise in compliance and data science to offer high-performance, AI-based solutions that help financial institutions stay ahead of regulatory requirements and technological advancements. Their AML solution, for instance, uses advanced AI algorithms to monitor transactions, detect suspicious activities, and ensure compliance with regulatory standards.